MD_DA410
DA
MD DA410 BUTTER - NORTHEAST 

MADISON, WI.   December 21, 2016 (Report 51)   
 

NORTHEAST BUTTER: 
 
Butter production is active with moderate to heavy churning. Butter 
producers are absorbing sufficient cream volumes to cover projected 
near term needs as offerings become more available. Heavier churning 
schedules are likely into next week for most operations as favorable 
pricing structures develop around surplus cream volumes. Retail and 
food service orders, although slower this week, are still good. The 
majority of manufacturers have booked and shipped all holiday orders. 
While a surge in the butter price is typical the week prior to the 
Christmas holiday, some market participants are still adjusting to 
strong fluctuations that occurred at the CME the past week. This lends 
a tone of firmness even as prices withdrew somewhat this week. Prices 
for domestic bulk butter sales are 5-8 cents over the market of the 
CME Group, with various time frames and averages used. Tuesday's CME 
Group cash trading saw Grade AA butter close at $2.2200, up $0.1350 
from the previous week. The DMN National Retail Report-Dairy, for 
December 16-22, 2016, noted the national advertised weighted average 
price for 1-pound butter was $2.77, unchanged from last week, but down 
33 cents from a year ago. The Northeast regional butter price was 
$3.17, up 45 cents from last week. However, the Southeast price 
dropped 40 cents, while averaging $2.86. This week, a cooperative 
export assistance program accepted requests for export assistance to 
sell 1.323 million pounds of butter. So far this year, a cooperative 
export assistance program has assisted to sell 11.076 million pounds 
of butter (82% milkfat).

1100CT daniel.johnson@ams.usda.gov 608.557.7006
USDA/AMS/Dairy Market News, Madison, Wisconsin
Dairy Market News website: http://www.ams.usda.gov/market-news/dairy
Dairy Market News database portal: 
http://www.marketnews.usda.gov/mnp/da-home